News Corp. Defends Dual-Class Structure, Citing Stability And Long-Term Outperformance

(RTTNews) - Responding to a non-binding stockholder proposal, News Corp (NWS, NWSA, NWS.AX, NWSLV.AX) stated that it believes the company's dual-class capital structure promotes stability and has enabled the successful implementation of its transformational strategy, resulting in long-term outperformance for all News Corp stockholders.

News Corp. confirmed that a stockholder has submitted a non-binding proposal for presentation at News Corp's 2024 Annual Meeting of Stockholders to request that the Board of Directors adopt a recapitalization plan that would eliminate News Corp's dual-class capital structure.

Earlier today, Starboard Value, a significant shareholder of News Corporation, issued a letter to News Corp shareholders regarding a proposal to eliminate the company's dual-class share structure.

Starboard believes dual-class share structures are NOT in the best interests of shareholders and are NOT reflective of best-in-class corporate governance practices. Theoretically, some may believe dual-class share structures could provide potential benefits to recently listed companies that, perhaps, want their visionary founder to be insulated against short-term pressures for a limited period of time. However, News Corp could not be further from this archetype.